Heritage take a look at how the 2016 Budget affects classic car owners.
Chancellor George Osborne has announced the 2016 Budget and among the big news like the continuing freeze on fuel duty, tax increases and benefit caps there were also some interesting announcements which may affect you as a classic car owner. Heritage Insurance take a closer look to help you understand what may lie ahead for you as a classic car owner.
Fuel Duty on the freeze
In 2016 – 2017 we’ll see fuel duty frozen again which marks the longest fuel duty freeze in over 40 years. According to government figures this should see a saving, for the typical motorist, of about £75 a year. We’ve all noticed reduction in the cost of fuel over the past few months, so hopefully this will keep the costs down so we can all enjoy taking our classics out of the garage and out onto the open road without our fuel consumption being such a huge concern.
Pot holes no more?
The state of Britain’s roads has become an every growing concern for motorists, with pothole
s becoming an increasingly bigger problem. So to combat this issue, Chancellor George Osborne announced an allocation of £50million to the Pothole Action Fund, which hopefully will mean local authorities can fill nearly a million potholes which is good news for our vehicles; although in 2015 the Asphalt Industry Alliance (AIA) estimated that over £12billion would be needed to restore our roads to a ‘reasonable condition’ so, it’s unclear how effective the Pothole Action Fund will be.
Rolling 40 year tax exemption
If you’re wondering how the 2016 Budget affects classic car owners, well the biggest announcement has to be that the current 40 year rolling tax exemption will continue on a permanent basis from 1st April 2017. Which means from the 1st April each year vehicles older than 40 years old will be exempt from paying VED for that year.
Increase in Insurance Premium Tax
Although the last Insurance Premium Tax (IPT) increase was only in effect November 2015, it has been announced that the IPT will be increasing again by 0.5%, bringing the rate up to 10%. This will of course affect the cost of insurance; IPT is added on top of your premium so it’s even more essential to ensure that you get the most cost-effective cover for you and your classic. Speak to a member of our team today for a quote and to claim your free Skytag GPS Tracker worth £249.95, you can call us on 0121 248 9229 or request a call back here.
Other announcements from the 2016 Budget
Chancellor George Osborne announced that driverless cars will be trialled on UK motorways from 2017. Funding for driverless car trials will come from the government’s Intelligent Mobility Fund which was set up earlier this year to invest in new innovations in transport. The fund has £100million in its pot, and £20million of this is to be allocated to eight autonomous vehicle projects. These will range from driverless shuttles for the disabled to developing autonomous vehicle testing centres.